HSA inflation adjustments issued for 2013


On Friday, the IRS issued the inflation-adjusted figures for the annual contribution limitation for health savings accounts (HSAs) and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans for calendar year 2013 (Rev. Proc. 2012-26).

Under Sec. 223, individuals who participate in a health plan with a high deductible amount are permitted a deduction for contributions to HSAs set up to help pay the individuals’ medical expenses. The limit on the contribution deduction is subject to an inflation adjustment each year: For 2013, the annual limitation on deductible contributions is $3,250 for individuals with self-only coverage and $6,450 for family coverage.

To be eligible to contribute to an HSA, individuals must participate in a “high deductible health plan,” which is defined as a health plan with an annual deductible that is not less than a certain limit each year and for which the annual out-of-pocket expenses, including deductibles, co-payments, and other amounts, but excluding premiums, does not exceed a certain limit each year (Sec. 223(c)). As with the contribution deduction limitation, these limits are subject to annual inflation adjustments. For 2013, the lower limit on the annual deductible under a high-deductible plan is $1,250 for self-only coverage and $2,500 for family coverage. The upper limit for these out-of-pocket expenses is $6,250 for self-only coverage and $12,500 for family coverage.       

Sally P. Schreiber ( sschreiber@aicpa.org ) is a JofA senior editor.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.